Human resource strategy and unionization: evidence from Taiwan

Abstract

Abstract Over the past two decades, industrial relations (IR) have seen the continuous decline of trade unions and a growing interest in high performance work practices (HPWPs). Human resource researchers, examining the traditional adversarial IR strategies, are increasingly calling for more co-operative and innovative HPWPs in employment relations. Can traditional union adversarial strategies exist along with HPWPs or does one necessarily exclude the other? To answer this question, this study, using questionnaires collected from locally owned and multinational corporations in Taiwan, investigates the association between unionization rate and HPWPs. Contrary to most findings from the Western context, HPWPs were found to have a positive and statistically significant impact on unionization at the firm level in Taiwan. The positive impact may be result of close and friendly relationship between employers and unions and the practices of 'employer-sponsored' unions in Taiwan. Furthermore, traditional Confucian culture and institutional factors have strengthened the influence of HPWPs on unionization. Keywords: High performance work practicesindustrial relationstrade unionsTaiwan Notes 1 Some researchers might use the term 'paradigm' more rigorously and not agree that collective bargaining and HPWPs are paradigms. Godard and Delaney (2000 Godard, J. and Delaney, J. 2000. Reflections on the High Performance Paradigm's Implications for Industrial Relations as a Field. Industrial and Labor Relations Review, 53(3): 482–502. [Crossref], [Web of Science ®] , [Google Scholar]) used paradigm shift to express the marvellous change from IR to HPWPs in the past decades. The concept will be examined in more detail below. 2 Various terms have been used to identify the change of the workplace, such as high performance work practices (Cappelli and Neumark, 2001 Cappelli, P. and Neumark, D. 2001. Do High-Performance Work Practices Improve Establishment-Level Outcomes?. Industrial and Labor Relations Review, 54(4): 737–75. [Crossref], [Web of Science ®] , [Google Scholar]; Huselid, 1995 Huselid, M.A. 1995. The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance. Academy of Management Journal, 38(3): 635–70. [Crossref], [Web of Science ®] , [Google Scholar]) and high-involvement system (Batt, 2002 Batt, R. 2002. Managing Customer Services: Human Resource Practices, Quit Rates, and Sales Growth. Academy of Management Journal, 45(3): 587–97. [Crossref], [Web of Science ®] , [Google Scholar]). Arthur (1992 Arthur, J. 1992. The Link between Business Strategy and Industrial Relations Systems in American Steel Minimills. Industrial and Labor Relations Review, 45(3): 488–506. [Crossref], [Web of Science ®] , [Google Scholar], 1994 Arthur, J. 1994. Effects of Human Resource Systems on Manufacturing Performance and Turnover. Academy of Management Journal, 37(3): 670–87. [Crossref], [Web of Science ®] , [Google Scholar]) clustered HRM practices as a continuum between cost reduction and commitment maximizing system. Following Bae et al. (1998 Bae, J., Chen, S. and Lawler, J.J. 1998. Variations in Human Resource Management in Asian Countries: MNC Home-Country and Host-Country Effects. International Journal of Human Resource Management, 9(4): 653–70. [Taylor & Francis Online] , [Google Scholar]), this paper classifies HRM practices as a continuum between control-based work system and high performance work system, which will be discussed in more detail in the methodological section. In addition, different researchers have various ideas of what HPWPs comprise, even though the core concepts and components are quite similar. 3 The term of corporatist industrial relations varies in its definition; however, it mainly describes the relationship between the state and social groups and interests. In this relationship, the state plays a key, dominant, role in regulation and coordination of the activities of social groups. Refer to Chen et al. (2003 Chen, S., Ko, J. and Lawler, J.J. 2003. Changing Patterns of Industrial Relations in Taiwan. Industrial Relations, 42(3): 315–40. [Crossref], [Web of Science ®] , [Google Scholar]).